The US dollar slipped to a fresh eight-week low as US benchmark 10-year Treasury yields declined and traders bet the Federal Reserve will cut interest rates further, after slashing them by 50 basis points this week. The dollar index, which tracks the greenback against a basket of other currencies, slipped to the lowest level since January 2 at 96.51.
Three-month LME aluminium trimmed some losses after it dipped to a session low of US$ 1,722.5 per tonne, which remained above the five- and 20- day moving average. It finished the day 0.35 per cent lower at US$ 1717.5 per tonne, with open interest up 2,625 lots to 744,000 lots as longs loaded up their positions. Today, LME aluminium is expected to hover range-bound between US$1,700 per tonne and US$ 1,730 per tonne.
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As of Thursday, March 5, LME aluminium cash (bid) price slipped by US$ 8.5 per tonne to stand at US$ 1714 per tonne; LME official settlement price also dropped by the same amount to stand at US$ 1715 per tonne. 3-months bid price stood at US$ 1725 per tonne, while 3-months offer price at US$ 1726 per tonne. Dec 21 bid price hovered at US$ 1843 per tonne and Dec 21 offer price at US$ 1848 per tonne.
The LME aluminium opening stock declined from 1050750 tonnes to 1040775 tonnes. While Live Warrants remained the same at 791550 tonnes, Cancelled Warrants plunged from 259200 tonnes to 249225 tonnes.
LME aluminium 3-months Asian Reference Price surged from US$ 1722.50 per tonne to US$ 1727 per tonne.
SHFE Aluminium Price Trend
Benchmark aluminium price for SHFE decreased on Friday, March 6, to stand at US$ 1,882 per tonne from US$1,889 per tonne on March 5.
The most-active SHFE 2005 contract hovered in a tight range and closed at RMB 13,245 per tonne. SMM data showed that social inventories of primary aluminium ingots in China extended gains as expected, while downstream demand is improving on the re-opening of factories. SHFE aluminium is expected to remain at lows without a direction. The most-active SHFE contract is expected to be at RMB 13,050 per tonne to RMB 13,300 per tonne.
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